The Ramsey Show Highlights We've Been Using Our HELOC As A Giant Credit Card
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Nov 22, 2025 Carol, a caller seeking financial guidance, shares her experience with a $400,000 HELOC and a hefty household income of $500,000. She discusses the challenges of using the HELOC like a credit card during the pandemic and her upcoming mortgage renewal. The hosts analyze her monthly expenses, including private school costs, and propose an aggressive repayment strategy to clear the HELOC in about three years. They emphasize lifestyle changes to achieve a debt-free future and prioritize long-term financial stability.
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Pandemic Renovations Blew Up Into Big HELOC
- Carol describes taking on large HELOC debt after pandemic renovations and failed investments.
- She confesses they've been treating the HELOC like a giant credit card and feel overwhelmed.
High Income But Big Mortgage And HELOC
- Carol reveals combined pre-tax income of about $500,000 and significant taxes reducing take-home pay.
- They carry a $750,000 mortgage at 3.6% and a $400,000 HELOC at 4.5%, with home equity available.
Keep Big HELOC Separate To Attack It
- Do not roll large HELOC balances into your mortgage if it prevents aggressive payoff.
- Keep the HELOC separate and attack it hard to avoid kicking the can down the road.